How to navigate construction sector inflation

Inflation is running rampant in Europe’s construction sector, with both materials and energy soaring in price. Picking a path through this will be difficult. But those who manage it will emerge in a far stronger position.

A lumber yard

Since the War in Ukraine began in February, rampant inflation has affected the construction sector in Europe where businesses were already struggling with price volatility caused by Covid-19-related supply chain disruption. In March alone, data from the Department for Business, Energy and Industrial Strategy (BEIS) suggests the cost of reinforcement and other commodities affected by the Ukraine crisis rose by over 30%.

New research from Arcadis highlights the trend of global inflation within the construction sector last year as construction markets across Europe and North America experienced double-digit cost increases during 2021 – and that the screw has tightened during the first half of this year with costs rising in many parts of the world.

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free
https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748.jpg

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up
MoneyWeek

MoneyWeek is written by a team of experienced and award-winning journalists, plus expert columnists. As well as daily digital news and features, MoneyWeek also publishes a weekly magazine, covering investing and personal finance. From share tips, pensions, gold to practical investment tips - we provide a round-up to help you make money and keep it.